“This partnership validates Cypress’s commitment to high-quality,
low-cost manufacturing in the United States”

The proprietary production process, developed by the Network and Imaging
Systems (NIS) division of DRS Technologies, will be transferred to
Cypress’s 65nm Class 10 8-inch wafer fabrication facility in
Bloomington, Minnesota. The exclusive agreement will allow DRS
Technologies to continue to improve sensor production by taking
advantage of Cypress’s advanced manufacturing for significantly reduced
wafer costs.

The agreement will leverage Cypress’s advanced process technology and
transfer expertise along with its Trusted Fab accreditation and quality
certifications for TS16949 and ISO14001. DRS and Cypress expect to have
qualified product by early 2014.

Cypress manufactures high-performance, mixed-signal, programmable
solutions for a variety of markets, proving an ideal partner for DRS
Technologies, a leader in infrared solutions for military and commercial
applications.

“The partnership with Cypress will allow us to better meet the growing
demands of the thermal imaging market,” said NIS President Mike Sarrica.
“With our advanced, proprietary microbolometer production process and
Cypress’s proven technology and manufacturing expertise, we can achieve
the high-volume, high yield and low-cost capabilities that have become
requirements of both the commercial and military markets.”

“This partnership validates Cypress’s commitment to high-quality,
low-cost manufacturing in the United States”, said Minh Pham, Executive
Vice President of Worldwide Manufacturing at Cypress. “This partnership
expands our base of foundry customers for our Minnesota wafer fab, and
will add new MEMS processing capabilities to support fabrication of
Microbolometers. We expect growth in our wafer foundry business as more
companies see the value and service we can offer.”

About DRS Technologies

DRS Technologies is a leading supplier of integrated products, services
and support to military forces, intelligence agencies, prime contractors
and commercial security operations worldwide. The company is a wholly
owned subsidiary of Finmeccanica S.p.A. (FNC.MI), which employs 70,000
people worldwide. Within DRS, the Network and Imaging Systems (NIS)
Company manufactures and supports advanced electro-optical sensor
systems, and develops innovative networking capabilities that integrate
these sensors in a broader tactical C4 environment. NIS is based in
Dallas, Tex.; Melbourne, Fla.; Cypress, Calif.; Huntsville, Ala.;
Columbia, Md.; and the UK. For more information about DRS Technologies,
please visit www.drs.com.

About Cypress’s Fab 4

Cypress operates its own wafer fabrication facility in Bloomington,
Minnesota, and offers access to this facility as a Specialty Foundry
Solutions provider. This 8-inch wafer fab manufactures in high volume
down to the 90-nm node with 65nm capability. It offers process
technologies that integrate SONOS-based non-volatile memory and
precision analog/mixed signal capabilities. The facility can handle ITAR
material, and has been accredited as a Category 1A Trusted Fab for
fabrication, design, and testing of U.S. DoD Trusted Microelectronics.
Learn more about the Cypress Foundry Solutions online at www.cypress.com/go/foundry.

About Cypress

Cypress delivers high-performance, mixed-signal, programmable solutions
that provide customers with rapid time-to-market and exceptional system
value. Cypress offerings include the flagship PSoC® 1, PSoC
3, and PSoC 5 programmable system-on-chip families and derivatives,
CapSense® touch sensing and TrueTouch® solutions
for touchscreens. Cypress is the world leader in USB controllers,
including the high-performance West Bridge® solution that
enhances connectivity and performance in multimedia handsets, PCs and
tablets. Cypress is also the world leader in SRAM memories. Cypress
serves numerous markets including consumer, mobile handsets,
computation, data communications, automotive, industrial and military.
Cypress trades on the NASDAQ Global Select Market under the ticker
symbol CY. Visit Cypress online at www.cypress.com.

Cypress, the Cypress logo, PSoC, CapSense, TrueTouch, and West Bridge
are registered trademarks of Cypress Semiconductor Corp. All other
trademarks are property of their owners.